On May 26, 2022 we held a webinar for expanding brokers and those looking to start their own stock brokerage. During the webinar Michael Sprachman, our VP of Trading Platforms, explained how fractional trading works and why brokers might want to launch it as part of their offerings.
He started with explaining the distinction between Fractional vs Notional Quantity and the concept of Fractional Inventory Management. After that Michael explained the important role of the order management system, touched on the Fractional Rounding Algorithm, which makes it possible to supports both fractional and notional quantities, and what role pre-allocated block orders play in this process.
Most of the functionality was demonstrated on DXtrade XT, our recommended solution for brokers who would like to enable fractional trading for their users. DXtrade offers a “brokerage in a box” solution, the platform can be white-labelled with a broker’s logo, it supports a wide range of trading instruments, including options and ETFs, can be configured to support both cash and margin accounts.
Watch the full recording here:
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